ImmunityBio 2025 Q1 Earnings Narrowed Net Loss by 3.3%

ImmunityBio (IBRX) reported its fiscal 2025 Q1 earnings on May 12th, 2025. ImmunityBio's Q1 earnings results showed a narrowed net loss compared to the previous year, indicating strong performance amid ongoing challenges. The company achieved revenue growth, surpassing expectations, driven by increased product adoption and strategic initiatives. Despite the persistent financial losses, ImmunityBio remains optimistic, maintaining guidance and expectations for continued revenue growth in the coming quarters. This positive trajectory in revenue and market momentum aligns with ImmunityBio's strategic focus on expanding its pipeline and addressing critical treatment needs.

Revenue
ImmunityBio reported a substantial increase in total revenue for Q1 2025, reaching $16.51 million, a remarkable growth from $40,000 in Q1 2024. This impressive performance was primarily driven by product revenue, netting $16.51 million. Additionally, other revenues contributed $8,000, culminating in a total revenue of $16.52 million for the quarter.

Earnings/Net Income
ImmunityBio narrowed its losses to $0.15 per share in Q1 2025 from a loss of $0.20 per share in Q1 2024, marking a 25.0% improvement. The company reduced its net loss to $129.67 million, showing a 3.3% decrease compared to the $134.13 million loss in the same quarter the previous year. Despite narrowing losses, the EPS reflects ongoing challenges.

Price Action
The stock price of ImmunityBio has climbed 4.66% during the latest trading day, jumped 12.38% during the most recent full trading week, and tumbled 9.23% month-to-date.

Post-Earnings Price Action Review
ImmunityBio's strategy of buying IBRX when revenues equal and holding for 30 days shows promising potential. The company demonstrated a significant increase in net product revenue for Q1 2025, approximately $16.5 million, marking a 129% increase over the previous quarter's $7.2 million. This growth, along with a permanent J-code implementation, streamlined billing and reimbursement processes, fostering favorable sales momentum. The ANKTIVA® unit sales volume grew by 150% over the previous quarter, with March's monthly volume increasing by 69% over February, reflecting strong market demand and efforts to address the Bacillus Calmette-Guérin (BCG) shortage. Despite a quarterly loss of $0.15 per share, ImmunityBio surpassed revenue estimates, indicating operational efficiency and market acceptance. The FDA's appointment of a chief AI officer may benefit ImmunityBio by enhancing regulatory processes. Overall, ImmunityBio's strategic approach, revenue growth, and regulatory developments suggest promising prospects for long-term investment, though investors should remain vigilant of broader market conditions.

CEO Commentary
"We are seeing a steady growth in revenue as urologists increase their use of ANKTIVA to treat NMIBC carcinoma in situ (CIS) patients, particularly since we addressed the BCG shortage with the launch of our rBCG EAP in February," said Richard Adcock, President and CEO of ImmunityBio. Nearly 200 urological practices are adopting rBCG, expanding access to treatment in underserved areas. Dr. Patrick Soon-Shiong, Founder and Executive Chairman, noted, "ANKTIVA's increasing use by urologists shows the real-world benefits of our unique approach to immunotherapy," highlighting progress in the company's pipeline and confidence in future advancements.

Guidance
ImmunityBio anticipates continued revenue growth driven by the increasing adoption of ANKTIVA and the successful implementation of the rBCG Expanded Access Program. The company is focused on advancing its pipeline, with multiple sites open for its second-line lung cancer study and plans for further expansion in treatment applications, including lymphopenia. The leadership expresses confidence in their ability to deliver more advanced treatment candidates based on solid scientific foundations.

Additional News
ImmunityBio recently received a Refusal to File (RTF) letter from the FDA regarding its supplemental biologics license application for ANKTIVA plus BCG in BCG-unresponsive NMIBC for papillary disease. Despite unanimous guidance at a January meeting, the FDA's refusal has prompted ImmunityBio to seek an urgent meeting to resolve the issue. ANKTIVA was previously approved in 2024 for BCG-unresponsive NMIBC with papillary tumors with CIS. Additionally, ImmunityBio is collaborating with the Serum Institute of India to address the BCG shortage, planning a regulatory submission for an alternative source of BCG in Q1 2025. This partnership aims to ensure a reliable supply for patients, emphasizing ImmunityBio's commitment to overcoming critical supply challenges.